Motor Trades Association of Queensland
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Motor Trades Association of Queensland A n n u a l R e p o r t 2 0 1 5
Contents 02 Chairman’s Report 11 Treasurer’s Report 12 Members Services and Support 17 Queensland Motor Dealer Council (formerly AADA Queensland) 18 Automotive Engineers Division 20 Automotive Parts Recyclers Division 22 Engine Reconditioners Association of Queensland 23 National Auto Collision Alliance 24 Queensland Farm and Industrial Machinery Dealers Division 26 Queensland Motorcycle Industry Division 27 Rental Vehicle Industry Division 28 Service Station and Convenience Store Association of Queensland 31 Tyre and Undercar Division of Queensland 33 Automotive Remarketing Division 35 MTA Institute of Technology 37 Financial Report 68 Board Members 2014 - 2015 Motor Trades Association of Queensland Industrial Organisation of Employers 01
Chairman’s Report Attached to this report are the comprehensive statements from the Chairs of the 11 Industry Divisions, each being a Board Member. I thank them for their duty, commitment and contributions. It is with pride I present the 2014-15 issues and matters relating to the motor Annual Report of the Motor Trades of trades. The Executive team meets when Queensland (MTA Queensland or the required. Board Members have been Association), an industrial organisation highly professional and conscientious in of employers in the motor trades, their deliberations on all matters before now in its 86th year representing the committee. Corporate governance the motor trades in Queensland. - the mechanisms, processes and David Fraser relations of the Board - has been and It is my sixth term as your Chairman, Chairman MTA Queensland is of a high standard. I thank each and it is my charter to ensure that the Board Member for their genuine and ‘Objects’ contained in the Association’s selfless service and commitment to rules, approved by Queensland’s the motor trades and the Association. Industrial Relations Commission and Fair Work Australia in November 2014, Attached to this report are the are complied with. These are: comprehensive statements from • to promote, advance and protect the the Chairs of the 11 Industry interest of the motor vehicle industry Divisions, each being a Board and associated trades or businesses Member. I thank them for their duty, in Queensland and to conserve the commitment and contributions. interest of Members; They are: • to advocate, advance and protect the interests of employers connected • David Fraser, MTA Queensland with the motor vehicle industry and Chairman and Chair of the associated trades or businesses in Queensland Farm & Industrial Queensland; Machinery Dealer Division • to consider and deal with any • Steve Eaton, MTA Queensland Vice question relevant to the motor vehicle Chairman and Chair of the National industry and associated trades or Auto Collision Alliance businesses; • Paul Peterson, MTA Queensland • to participate in, promote and Secretary/Treasurer and Chair of encourage all forms of education the Queensland Motorcycle and training supportive of the development of the motor vehicle Industry Division industry and associated trades or • Mark Bryers, Chair of the Engine businesses in Queensland; and Reconditioners’ Association • to do any such other lawful things Queensland as may appear to be incidental or • Garth Madill, Chair of the Queensland conducive to the above Objects in Motor Dealers Council any of them. • Glen Ford, Chair of the Automotive In the past 12 months, your Board Parts Recyclers Division has been diligent in attending to these multifaceted duties in what • Tim Kane, Chair of the Service Station has been, for employers in the motor & Convenience Store Association trades, a year of political uncertainty, Queensland differing economic conditions and • John Ruddick, Chair of the Tyre & challenging industry changes. Undercar Division of Queensland Your Board has met on four occasions to • Charlie Serchen, Chair of the consider and determine MTA Queensland Automotive Engineers Division 02 Motor Trades Association of Queensland Industrial Organisation of Employers
New corporate partners have joined MTA Queensland whilst other partnerships have ceased. I acknowledge each and thank them on behalf of the Board and Members for their support. • Michael Kennedy, Chair of the respectively and their input into • Commonwealth Bank – offering Automotive Remarketing Division the Association’s governance. members some of the lowest EFTPOS charges and other benefits; • Chris Ching, Chair of the Rental I thank our regional representatives Vehicle Industry Division • Dun and Bradstreet – the nation’s - Steve Eaton, Vice Chairman foremost credit control and debt Charlie Serchen, after almost 40 years and Representative for Far North collection agency; in the repair sector, is leaving us having Queensland Region; Rod Pether, relocated his business to northern • Staples – the leading supplier Representative North Queensland New South Wales and is no longer of a complete range of office Region and James Robertson, consumables; able to contribute. From 2002, Charlie Representative, Central Queensland chaired the now Automotive Engineers • Australian All Energy Solutions Division (AED) (formerly the Combined Region for their commitment and sense (AAES) - a QLD-based renewable Mechanical Repair Specialist Division). of duty to the motor trades and the energy company that are the leading Under his leadership, the Division dealt Association. They put before the Board solar consultants and experts in with many issues including the recent the economic conditions, employer and solar solutions; complex and challenging changes industry policy issues of their respective • Guard Insurance - specialists in in the motor vehicle repairs sector. areas and contribute to our governance. insurance and risk management Members of the AED have elected Mark Combined, they provide a holistic solutions; and Dodge from Cairns, the former Vice perspective of the State’s automotive Chairman, to fill the vacancy. On behalf • Our Auto Tech-Centre - offering value chain’s economic conditions and of the Board I welcome Mark and look access to the largest technical library employer policy and industry issues. in the southern hemisphere. forward to his contributions for the AED. Glen Ford, the Chairman of the Auto Executive Team The partnership arrangement between Parts Recyclers Division (APRD) Staples and the Association has In between Board meetings, the changed and on behalf of the Board has ably led the sector since 2006. governance and administration of the I thank Staples for their long-standing He has decided to follow his own Association rests with the Executive support over the past years. advice, offered in the APRD’s 2014 Annual Report, which was ‘to look at Team that includes General Manager Kellie Dewar and Managing Director a succession and retirement plan’ and of Strategic Operations Steve Ghost. Corporate Office did not nominate for the position of Under the leadership of General Chairman. During Glen’s stewardship, I thank each for their service to the Manager Kellie Dewar, the important there were ongoing challenges in Board, the Membership, their belief corporate tasks of administration, the parts recycling sector which he in and pursuit of the Objects of service delivery, advocacy and openly addressed. This included large the Rules of MTA Queensland and communications have been sustained corporate entities moving into the their integrity and professionalism and delivered at a high level by her industry. Lawrie Beecham from Hervey in performing their duties. and her loyal and competent staff. Bay, who was an active Member of the On behalf of the Board, I thank APRD Division, was elected as Chair. Corporate Partners Kellie Dewar and each officer for On behalf of the Board, I thank their professionalism, dedication and New Corporate Partners have joined MTA Charlie Serchen and Glen Ford for commitment to the Association and Queensland whilst other partnerships their long-term loyalty and service to the Membership. Thank you. have ceased. I acknowledge each and to their respective Divisions of the thank them on the behalf of the Board Over the year, some long-serving motor trades and to the Association. Our best wishes are with them in and Members for their support. They are: staff have found careers elsewhere the new phases of their lives. which has brought new faces to • MTAA Superannuation – our our corporate office. On behalf of superannuation partner; On behalf of the Board, I welcome the Board, I thank each of them, Mark Dodge and Lawrie Beecham • Capricorn Society Limited – the particularly former Divisional Executive and look forward to their contributions largest independent automotive parts Ben Chesterfield and Administrative for the AED and the APRD buying cooperative in Australia; Assistant Katie Gould, for their Motor Trades Association of Queensland Industrial Organisation of Employers 03
Chairman’s Report continued In the State, strong and productive relationships have been forged with the Departments of Justice and Transport and Main Roads and with the Brisbane City Council. professionalism and welcome Colin and Transport and Main Roads and • Motor Accident Insurance Fitzpatrick and Sara Cameron to the with the Brisbane City Council. At the Commission Review of the limits respective roles and to the team. Commonwealth level, through strong to apply to Compulsory Third policy development submissions, the Party Premiums; To ensure that our staff continues to MTA Queensland is recognised as a • Response to Parliamentary Finance provide the high standard of service responsible and strong contributor. and Administration Committee re delivery for which the Association is Meetings with other peak the Workers’ Compensation and renowned, skills in operational and organisational representatives and Rehabilitation and other Legislation administrations systems are updated individual Members of Parliament Amendment Bill 2015; as required. This is necessary to meet the changing needs of Members, have transpired as required. • Response to the Parliamentary e-commerce and communications. and Legal Affairs and Community The 2014-15 year included the Safety Committee re An Inquiry into At the end of the 2015 financial State General Election and, as is the consumer protections and remedies year, Ian Field resigned as Chief practice, a policy submission was for buyers of new motor vehicles Executive Officer. On behalf of the forwarded to the major political parties (Lemon Laws); MTA Queensland Board I thank him contesting the poll. As a follow up, • Response to the Department of for his experienced and professional congratulatory letters were sent to all Transport and Main Roads discussion leadership of the Corporate Office. Members, the newly elected Premier paper on Motorcycle licensing; and the Ministers with commissions On 12 December 2015, the MTA relative to the motor trades, as well as • Response to the Parliamentary Queensland’s corporate office and to the Leader of the Opposition and Utilities, Science and Innovation the MTA Institute of Technology will the appropriate Shadow Ministers. Committee re the Liquid Fuel Supply have resided in the state-of-the-art Sir (Ethanol and Other Biofuels Mandate) Jack Brabham Automotive Centre of In addition, congratulatory letters Amendment Bill 2015; Excellence for exactly four years. were sent to the newly elected Prime • Response to the Parliamentary Minister and newly appointed Federal Education and Small Business Ministers with portfolios of relevance Advocacy to the automotive value chain. Whilst Committee re the Jobs Queensland 2015 Bill; and A core function, as stated in the Rules, these letters are congratulatory, they is ‘to advocate, advance and protect inform about the MTA Queensland and • Response to the Parliamentary the interests of employers connected the spread of the Membership and Finance and Parliamentary Committee with the motor vehicle industry and motor trades throughout the State. re the Inquiries into possible changes associated trades or businesses in to Queensland Parliamentary terms. Queensland’. The past year has been All governmental policy processes relevant to the automotive value chain Policy submissions to the one of change, complex policy issues have been responded to either by Commonwealth Government include: and difficult economic conditions for industry. On behalf of the MTA way of submissions, fora attendance, • Comprehensive response to the Queensland, General Manager Kellie or by appearing before Parliamentary Australian Treasury Competition Policy Dewar has cogently presented the Committees or Departmental meetings. Review Secretariat re the Competition Association’s views either in submissions, As is the practice, the Association Policy Review Draft (Harper) Report; fora, or meetings. In-so-doing, the provides a pre-budget submission to both the Commonwealth and • In partnership with the Queensland standing of the MTA Queensland as the State Budget processes from the Chamber of Industry and Commerce voice of the motor trades has been heard perspective of the motor trades. and other Queensland employer and the feedback is that it is respected. organisations, a submission to the Policy Submissions to the Queensland Productivity Commission’s Inquiry Our standing as the peak body Government include: into the operation of the Fair Work representing Queensland’s motor trades has been entrenched at all levels of • Response to the State Government’s Act 2009; government. In the State, strong and discussion paper Towards a clean • Response to the Australian Treasury productive relationships have been energy economy; achieving a biofuels Small Business, Competition and forged with the Departments of Justice mandate for Queensland; Small Business Division re the Unfair 04 Motor Trades Association of Queensland Industrial Organisation of Employers
All governmental policy processes relevant to the automotive value chain have been responded to either by way of submissions, fora attendance, or by appearing before Parliamentary Committees or Departmental meetings. Contract Terms Consultation Paper • The improved and updated Fora Franchising Code of Conduct which Extending Unfair Contract Term Over the past year, the MTA Queensland became law as from 1 January 2015. Protections to Small Business; has been invited to participate in various The MTA Queensland has been • Response to the Australian Treasury policy fora. These include: involved in submissions relating to Small Business, Competition and • The Queensland Loss and Crime the Code since 2008. Small Business Division re Exposure Committee as a contributing member • Working with the Queensland Office draft legislation consultation for to represent the service station sector; of Fair Trading on what they refer Extending Unfair Contract Term • The Chamber of Commerce of to as ‘Operation Round Up’ which Protection to Small Business; seeks to limit the operations of Industry Round Table to discuss • The Australian Treasury, Competition unlicensed motor dealers preying on the Productivity Commission Inquiry and Consumer Division re the Small unsuspecting consumers. It dovetails into the Fair Work Act 2008 and Business and Family Enterprise with our ‘Dob in a Backyarder’ the concept of a unified industry Ombudsman Discussion Paper; program; submission; • The Australian Treasury, Competition • Amendments to the Transport • The State Government’s Business and Consumer Division re Exposure Operations (Road Use Management) Advisory fora; draft Australian Small Business and Act 1995 (s 133 Business owner • The State Government’s Safer Roads, to record information about repairs Family Enterprise Ombudsman and Safer Queensland forum; and painting) which clarified the Associated Bills; • The Department of Transport and Main requirements for motor vehicle • Response to the Senate Legal and repairers to keep records about Roads development of a ‘Long term Constitutional Affairs Committee re the repair and painting of vehicles Transport Strategy and Direction for the the Australian Small Business and and simplified the record-keeping Queensland transport system’ forum; Family Enterprise Ombudsman requirements. The new provision • Biofuels Mandate Workshops; Bill 2015; showed there was no need for the • Motor Vehicle and Chattel records to be kept in a separate, • The Australian Treasury White Paper Auctioneers Act 2014 information formal register. It made clear that the March 2015 Re:think, better tax, sessions concerning the new records may be kept through ordinary better Australia; regulatory requirements; documents used by repairers such • The Senate Economics Legislation as invoices, computer records, job • Divisional industry summits; and Committee Inquiry into the provisions cards, paper records etc. They must • National meeting of the respective of The Treasury Legislation be, however, complete and accessible motor trades Divisions. Amendment (Small Business and should the need arise; Unfair Contract Terms) Bill 2015. • Successful engagement with the • Response to the Department of Achievements Department of Transport and Infrastructure and Regional Affairs Achievements have long lead-times Main Roads and the Office of Fair Vehicle Safety Standards Division re requiring patient and consistent Trading on a range of legislative and the Options Discussion Paper 2014 advocacy. In the past year, measures regulatory issues relating to the of the Motor Vehicle Standards that have been realised to the benefit motor trades; Act 1989; of the motor trades include: • Resolution to Voluntary Code of Practice relating to the Access to • The Australian Treasury Deregulation Achievements: Service Information; and Division re Treasury Legislation • The commencement of the standalone • Amendments to the Vehicle (Spring Repeal Day) Bill 2015; and legislation - the Motor Vehicle and Registration Regulation to provide • Letter referring to the Australian Chattel Auctioneers Act 2014 from that unregistered vehicles that are Competition and Consumer 1 December 2014 which had been dealer’s stock being used within Commission re sustained high prices a long-standing policy goal - some the dealer’s premises are exempt of fuel in regional areas that did not fourteen years. It included the effect of vehicles. This ensures that, as a reflect declining oil price. replacing 14 forms with three; Compulsory Third Party Insurance Motor Trades Association of Queensland Industrial Organisation of Employers 05
Chairman’s Report continued The practice of meeting with regional Members to hear their issues, gain understanding of their service needs and impart industry and Association information continued over the past year. policy is not available for exempt Service Stations and Convenience The MTA Queensland on Wednesday vehicles, dealers may obtain liability Stores, National Auto Collision 26th November, 2014, gained Federal insurance to cover unregistered Alliance, and the Queensland Farm employer registration. In the past, and vehicles used on their premises. and Industrial Machinery Divisions. under the Fair Work Act, the Association was a ‘Transitionally Registered Stationery and Technical Adviser Membership services Russell Sticklen has been part of Organisation’ in the federal system which allowed it to represent Members’ The cornerstone on which the MTA the MTA Queensland story for some interests in all industrial relations Queensland rests is Membership 21 years. He oversees the supply of matters. The practical differences Services which oversees and delivers industry-specific products such as between the transitional registration and the requirements of Members, from sales contracts, job cards and the full registration are negligible excepting advocacy to industrial relations to production of brochures and leaflets it allows the Association to take its publications, to assist them in the for Members. Russell Sticklen is place with other federally registered operations of their businesses. General an excellent source for technical employer organisations in the name Manager Kellie Dewar and her team information and advices for Members. of the Motor Trades Association of have provided a high standard of Queensland Industrial Organisation of support services to assist and advance On behalf of the Board, I thank the functioning of each Division. This is Employers. The Association has been Kellie Dewar and her team for acknowledged in each of the Divisional a registered employer organisation in their professionalism, service and reports. To a great extent, the culture the Queensland Industrial Relations commitment to the Membership. of professionalism, service delivery system since 25th March 1949. and care for the Membership derives I commend to Members, General On behalf of the Board, I thank from Kellie Dewar’s leadership. Manager Kellie Dewar’s report. Ted Kowalski and new recruit Paul The practice of meeting with regional Murray for their service and advice Members to hear their issues, gain Industrial Relations to Members on motor trades and understanding of their service needs The industrial relations services employer matters. I place on record and impart industry and Association provided to Members by the MTA appreciation to Michelle Chadburn information continued over the past Queensland are ‘second to none’. for her contributions to Members on year. General Manager Kellie Dewar and Ably led by our long-serving Industrial workplace relations matters whilst Divisional Executive Andy O’Hearn have relations specialist Ted Kowalski, she was with the Association. shared opportunities to meet Members assisted by Paul Murray, Members I commend to Members, in Cairns, Mareeba, Townsville, have access to immediate and Industrial Relations Manager Gladstone and Cloncurry. These visits professional advice pertaining to Ted Kowalski’s report. were in addition to the face-to-face visits the Fair Work Act and the full suite from the Divisional Executive team. of workplace relations issues. Industry Awareness The MTA Queensland and the BUSY At Work organisation have partnered to A focus for the past year has been - Public Relations the ‘Four-Year Review of Modern secure access for members to BUSY Modern communication platforms Awards’ which is anticipated to be At Work’s apprenticeship services. into today’s business environment completed by early next year. For the These include matching apprentices to are vital to provide Members with Association, the relevant Awards are business through the world-renowned quick and accurate access to data. the Vehicle Manufacturing, Repair, Harrison Career Assessment Tool, Your Association will continue to Service and Retail Award and the and access to mentoring services to increase its electronic communications Clerks Private Sector Award. The capacity to and from Members help businesses retain apprentices. essential purpose of the review is to to enable information currency Divisional Executive Ben Chesterfield determine if the modern award system and real-time engagement. resigned to take a position elsewhere. is working the way intended. The MTA Colin Fitzpatrick now has the Queensland collaborated with other Skype and teleconferencing responsibility to the requirements of similar stakeholders in the compilation infrastructure is in place to provide the Tyre and Undercar, Rental Vehicles, of submissions to the review. Members with immediate access 06 Motor Trades Association of Queensland Industrial Organisation of Employers
The MTAIT remains the largest training provider to deliver on-site training to the collision repair industry throughout Queensland. to meetings and discussions. This The apprenticeship system remains the Certificate I in Automotive Vocational ensures that any Member, regardless the industry’s preferred model of Preparation in Light Vehicle Automotive. of location in our decentralised State, skills formation. The MTAIT’s overall can engage in Divisional meetings. apprenticeship numbers have slightly The MTAIT signed a Memorandum declined over the year. There are a of Understanding with two South The Motor Trader magazine is in its variety of reasons for this reduction in Korean training institutions and the 81st year of publication as the voice apprenticeships, which include a slower Brisbane based Smart Education of the motor trades and is one of the and Training Australia consultancy uptake of automotive apprentices, higher oldest trade magazines in the nation. to establish a mutually beneficial completion rate of students without There are eleven editions each year collaborative relationship between replacement and aggressive competition. that are produced in-house. Editor the four parties. This will lead to Jonathan Nash ensures it is a source The MTAIT remains the largest training providing students and teachers with for motor trades’ information, policy and provider to deliver on-site training to customised training programs. In advocacy news and that it promotes the collision repair industry throughout addition, a Chinese delegation from the Members and their businesses, Queensland. This model of delivery Sichuan province visited the Sir Jack emphasises skills and training and is allows employers and students the Brabham Centre of Excellence with entertaining. In addition, Jonathan is flexibility and consistency of one-on-one the aim of gaining understanding of the Editor of the Australian Tyre Dealer training to maximise learning outcomes. Vocational Education Training and how which is the authority on tyre industry The Learning Management System, the MTAIT trainers deliver in practice. issues. It is distributed nationally to an online system to assess students a wide readership six times a year. with employer input, has enabled At the beginning of 2015, the the MTAIT to provide greater training MTAIT introduced the National Together, all of our publications establish Automobile Dealership Association services to the collision repair industry. the credentials of our Association to University courses, specially Members, within the community and The MTAIT continued to actively tailored to the Australian market. the various agencies of government engage with the national automotive The courses offer dealerships the by disseminating the views and news industry skills council, Auto training to grow their business and of our several industry sectors. Skills Australia (ASA), to provide improve financial performance. On behalf of the Board I thank feedback into the development of the automotive training package The quality of MTAIT training is Editor Jonathan Nash and his team and to drive policy development in illustrated by students successful in for the enthusiasm and energy government agencies. The MTAIT winning industry Awards. There have they bring to their roles, and the holds a board position at ASA and been many outstanding success insightful and enjoyable automotive actively represents the Queensland stories highlighted in the Motor Trader. stories in the publications. automotive industry’s interests. I particularly mention Peter Cooke, a mature-age student who completed Training A new initiative for the MTAIT has his apprenticeship with the MTAIT, and Similar to businesses in the motor been to deliver its automotive training who won the prestigious National 2014 trades, the MTA Institute of Technology to international students to enable Ulysses Club Motorcycle Apprentice (MTAIT) has felt the headwinds of them to increase the depth of their of the Year Award. Luke Smith and challenging economic and business automotive knowledge and transfer Connor Litchfield - both third-year conditions. It has, however, maintained these newly acquired skills back to their automotive electrical apprentices with its position as the largest automotive home country. The MTAIT designed a the Brisbane City Council based at private training provider in Queensland. special training program for students the Toowong Bus workshop - claimed As at June 2015, the MTAIT had 29 per from South Korea’s Daejeon region. the Apprentice of the Year and cent of the automotive apprenticeship It was organised in conjunction with Innovator of the Year respectively. market delivering qualifications across education consultancy group Smart And, of course, Sarah Gale, a Queensland through 35 trainers. For Education Training Australia and second-year Light Vehicle apprentice the last financial year, the MTAIT the Daejeon Metropolitan Office of with Rego’s Mobile Mechanical provided training to in excess of Education. Students engaged in the Services at Atherton, was the MTA 1600 apprentices and trainees. program were successful in achieving Queensland’s Apprentice of the Year. Motor Trades Association of Queensland Industrial Organisation of Employers 07
Chairman’s Report continued Whilst the nomenclature of sales, service and repair of motor vehicles and components has not changed, consumers will expect the most advanced technology, innovative practice and skilled staff to service their needs. Success in training can take many best practice accounting policies and e-commerce, business consolidation, forms and may include a culture standards. The processing of financial technological innovations and enhanced of encouraging aspiration. Luke and information data is electronic and competitiveness in our market places. Roxburgh’s apprenticeship journey has I place on record the competency been one of resilience, determination of the Association’s Information Whilst the nomenclature of sales, and inspiration. He started his Light Technology Manager James Orr. service and repair of motor vehicles Vehicle mechanic apprenticeship in and components has not changed, 2003 but a horrific train accident left On behalf of the Board, I thank consumers will expect the most him severely injured and unable to Kathy Winkcup, her staff, and advanced technology, innovative work. Following years of recovery, Paul Peterson for the integrity, practice and skilled staff to service Luke returned to the workshop in commitment and diligence they devote their needs. These sectors represent 2013, restarted his apprenticeship, to their respective duties and roles. some 95 per cent of the automotive and in July this year was named I commend to Members, Treasurer value chain’s business activity and MTAIT Student of the Month. Paul Peterson’s Financial Report will do so into the foreseeable future. for the year ended June 2015. The MTA Queensland is aware On behalf of the MTA Queensland that consumer expectations in an Board, I thank the MTAIT Board and The Association’s finances are environment of rapidly advancing General Manager Training Operations audited by BDO, Brisbane-based technology and frequently reformulated Paul Kulpa for the successful delivery accountants specialising in Audit, policies must be met by both the of a central element of our Rules ‘to Tax and advisory services. On peak body and individual employers. participate in, promote and encourage behalf of the Board, I thank BDO for Evidence of the Association’s ability all forms of education and training their assiduity and professionalism. to accommodate the demands of supportive of the development of the I commend to Members the the market place is illustrated by motor vehicle industry and associated Independent Auditor’s Report. the currency and achievements of trades of businesses in Queensland.’ the MTAIT’s training programs. Appreciation is extended to the The Motor trades and Australia is a stable democracy in which MTAIT Board comprising Chair the economy Governments are changed through Ian Lawrence, Deputy Chair and As the retiring Chair of the AED, Charlie the ballot box. Each government has Director David Fraser, Directors Serchen stated in his final report, ‘2015 a mandate to deliver. It is not in the Alan Bonsall, Mark Brady and Steve has had its challenges for all concerned interests of the economy or business Ghost; General Manager Training with the motor industry’. The consistent certainty and confidence for there to Operations Paul Kulpa; MTAIT Trainers sentiment across the MTA Queensland’s be a continual churn generated by and staff for their commitment and Divisions has been the differing indefinite policy reform programs that passion to the training of students economic conditions, the challenging dominate the atmospherics in which and for embedding within the MTAIT sectoral changes and political businesses are required to operate. a culture of respect and learning. uncertainty confronting business. The Reserve Bank of Australia through I commend General Manager The aftermath of the announcements 2014-15 operated an expansionary Training Operations Paul Kulpa’s that the domestic motor vehicle monetary policy with the official cash comprehensive report to Members. manufacturing will terminate, the rate now maintained at a record low impending Bilateral Free Trade of 2.0 per cent set in May 2015. This Finance Agreements with Japan, South Korea has been assisted by a depreciating The MTA Queensland’s financial and China, and the signing of the plural Australian dollar and low inflation. operations are reliant on quality Trans Pacific Partnership, each have Offset against this has been a chronic accounting and financial management consequences that will affect the motor collapse in demand of the global systems and policies. The Association’s trades into the near and longer terms. resources sector, climatic impacts finances and accounting systems are The economic reality is that the motor that include the continuing severe the responsibility of Chief Financial trades must embrace the opportunities drought conditions across 80 per Officer Kathy Winkcup and the Treasurer that flow from these frameworks cent of the State, a damaging hail Paul Peterson who have complied with and other changes including storm in February 2015 that caused 08 Motor Trades Association of Queensland Industrial Organisation of Employers
The 2015 Automotive Environment Scan reports that the State’s motor trades comprise some 13,700 business enterprises (the latest available data 2012-13). some $1 billion of damage and the I have great hopes the next year MTA Queensland corporate office violent cyclone Marcia that wrought will see a sustained economic carry his name - Sir Jack Brabham destruction in Central Queensland. recovery for business generally and Automotive Centre of Excellence. These impacted detrimentally on the motor industry specifically. motor trade businesses, although The highlight of the evening was the presentation of the MTAIT Apprentice it must be said that the repair Ag Show of Year Award and the new MTA sector did receive an impetus in In 2015, the Ag Show event usually Queensland Member Awards for business activity from demand to held in each September was ceased. Innovation and the Community. Sarah repair hail-damaged vehicles. After 21 years of the Queensland Gale, a second-year light vehicle The 2015 Automotive Environment Farm and Industrial Machinery apprentice from Rego’s Mobile Scan reports that the State’s motor Dealer Division (QFIMDD) partnering Mechanical Services in Atherton was trades comprise some 13,700 business with the Royal Agricultural Society acclaimed as the MTAIT Apprentice enterprises (the latest available data of Queensland Toowoomba and of the Year and presented with the 2012-13). This is some 750 fewer The Toowoomba Chronicle, the Ag MTAA Super $2,000 prize money. than the previous year with more than Show partnership was dissolved. Sarah said she would spend the award half contributed from the Automotive prize on a new toolbox, but MTAQ Across those 21 years, the Ag Show Repair and Maintenance sector. Sole Automotive Remarketing Division has been a popular and well supported proprietor businesses without any Chair Michael Kennedy, of Brisbane event by exhibitors and patrons alike. employees comprised the bulk of the Motor Auctions, offered to supply Behind the scenes it was the QFIMDD closure, particularly within the vehicle Sarah with a new toolbox so she could committee and the MTA Queensland body repair and vehicle mechanical spend the money on something not staff which drove the success. On repair subsectors. On the other hand, work related. On behalf of the Board, behalf of the Board I thank all who employment within the automotive I thank MTAA Super and Michael have contributed to its success. industry for 2013-14, according to Kennedy for their generousity. the Australian Bureau of Statistics, Another event is taking shape. The MTA Queensland Innovation Award was strong with a workforce of some The QFIMDD are in discussions was won by A1 Mobile Mechanics 92,500 people. This indicates that the with other industry partners to host for the CM400, a jump start pack automotive industry enterprises in this a farm industry technology driven developed by business owner Frank State are resilient, efficient and well event which will include a focus on Teggart. The MTA Queensland managed but undoubtedly competition, farm machinery in the production Community Award was won by the size, financial capital and economic of the food and fibre chain. Crick Group for their two major conditions have made for a tough year. initiatives. Firstly, the Crick Eastham President’s Ball Foundation which is committed to Whilst the past year has been The second Annual President’s Ball raising funds for charities that support economically and financially subdued was held on 1 November 2014, at either children, the community or the for business, recent soundings for the Hilton Brisbane. It was an evening fight against cancer and secondly, the last quarter of the calendar year of camaraderie, conviviality, industry the ‘Cricks 12 Lives’ initiative which indicate that businesses are expecting celebration and reflection. The event aims to help change the life of increased activity, with profit, sales was hosted by Master of Ceremonies someone in the community. and employment activity expected Peter Kelly with speakers including to rise. This positive local economic environment must be judged against the MTA Queensland Chairman David Fraser, Suncorp Group’s Brett Wallace, Annual Golf Day external headwinds in the form of The 66th Annual Motor Trade Golf Capricorn Society’s Dale Durden, and mixed data soundings coming out Tournament was held on Thursday Leeanne Turner from MTAA Super. of China, the continuing uncertainty 15th October, at the Nudgee Golf Club. surrounding the US Federal Reserve’s A gentle and reflecting touch was a It is an 18-hole Stableford competition intention to unwind quantitative short video on the accomplishments in which players compete for the Motor easing and the advent of increasing and the legacy of the late Sir Jack Trade Cup with the winner’s receiving a interest rates in the US economy. Brabham who agreed to have the replica of the Cup and a special trophy. Motor Trades Association of Queensland Industrial Organisation of Employers 9
Chairman’s Report continued On behalf of the Board I thank Members such as ‘the great depression’, who donated the other numerous a world war, credit restrictions of the trophies. Some of the proceeds from 20th century, a global financial crisis, the event may be donated to charity. several severe climatic catastrophes and great technological revolution. Central In Memoriam to our belief is entrepreneurialism and a culture of service to our To all Members who have customers and the general public. incurred bereavement, we offer our sincere sympathy. The MTA Queensland Board is committed to the Rules on which Congratulations it was founded and has resolved to continue to apply best practice On behalf of the Association, governance to all its endeavours. I congratulate all Members who have won prestigious awards this year. The Association’s future challenge is to prepare for on-going changes that Mr Frederick Ainsworth was awarded inevitably will occur during this century, a Medal of the Order of Australia for provide high quality advocacy on behalf his exceptional and long service to the of Members, consolidate our position community of the Western Downs. as Queensland’s peak motor trades The citation included early membership organisation and provide the leadership with the Motor Trades Association of to fulfill the object of our Rules. Queensland and as a Foundation Member of the now Queensland Farm and I commend this report to Members. Industrial Machinery Association Dealer Division (QFIMDD). On behalf of the MTA David Fraser Queensland, congratulations on the award Chairman MTA Queensland and for the service to the community of the Western Downs and the motor trades. The Future The future of the MTA Queensland rests without exception on its core principles contained in its Rules which include: • promotion, advancement and protection of the interest of the motor vehicle industry and associated trades; • advocacy, advancement and protection of the interests of employers connected with the motor vehicle industry; and • promotion and encouragement of all forms of education and training supportive of the development of the motor vehicle industry. For 86 years, at one time or another, these core principles have been the guiding light for motor trades’ employers to prevail through diversities 10 Motor Trades Association of Queensland Industrial Organisation of Employers
Treasurer’s Report In 2015/16, the Executive will be focusing on building its membership and broadening its commercial activities whilst ensuring members remain the heart of the Association by providing quality services that add value. The 2014/15 financial year for the MTAQ holds 19 units of a total 115 Association resulted in a deficit units at the fair value of $2,181,083 position of $692,346. This loss arose which are currently held for sale primarily due to an impairment loss • Investment portfolio with Dalton of $474,585 on the investment in Nicol Reid comprised of investments MTAA Unit Trust in Canberra. Other in ordinary shares listed on the significant changes in operating Australian Securities Exchange. Paul Peterson income and expenses were the loss of Value at the end of the reporting Treasurer/Secretary MTA Queensland income commissions from corporate period was $1,287,410 partners of $116,000 and a donation expense to AADA Ltd for $200,000. General comments The financial accounts, as presented, In summary, the 2014/15 year has were audited by BDO Audit Pty Ltd. resulted in a significant reduction in Federal Government funding for Financial Results 30th June, 2015 training support projects and a national reduction in apprenticeship take up. Deficit attributable to Members In 2015/16, the Executive will be focusing on building its membership of the Organisation and broadening its commercial activities This year’s deficit attributable whilst ensuring members remain the to members of the organisation heart of the Association by providing result was $692,346. quality services that add value. Significant operating income and Paul Peterson expenses during 2015 compared Treasurer/Secretary MTA Queensland to 2014 were: • COGS Training variance was due to licence fees paid to NADA University of $392,500 • Commissions received, MTAQ no longer receives commission from Capricorn Society and NRMA, which resulted in a difference of $116,000 • MTAQ received $163,400 from MTAA House dividends, an increase of $58,900 Balance Sheet Overall, the equity position of the Association remains strong at $15,803,863. Significant matters in the financial statements during 2015 were: • MTAA Unit Trust investment is valued at fair value based on the net asset position at 30 June, 2015. This resulted in a revaluation of the asset by $526,226.85, with an amount of $474,584.85 affecting the bottom line. Motor Trades Association of Queensland Industrial Organisation of Employers 11
Member Services and Support We are excited about expanding our regional visit program next year to launch the Professional Circle to all Members. • Response to the Department of Regional Visits Transport and Main Roads discussion We have continued our regional visits paper on Motorcycle licensing; schedule in 2015 and look forward to • Response to the Parliamentary catching up with more members in 2016. Utilities, Science and Innovation We shared opportunities to meet Committee re the Liquid Fuel Supply with members in Cairns, Mareeba, (Ethanol and Other Biofuels Mandate) Kellie Dewar Townsville, Rockhampton and Cloncurry. Amendment Bill 2015; General Manager MTA Queensland These meeting opportunities were • Response to the Parliamentary additional to our regular Divisional Education and Small Business call schedule. Committee re the Jobs Queensland 2015 Bill; and We thank Members for making us welcome and for your participation. • Response to the Parliamentary Finance and Parliamentary Committee We are excited about expanding our re the Inquiries into possible changes regional visit program next year to to Queensland Parliamentary terms. launch the Professional Circle to Policy submissions to the all Members. Commonwealth Government include: • Comprehensive response to the Policy Work Australian Treasury Competition Policy Submissions: State and Review Secretariat re the Competition Federal break down Policy Review Draft (Harper) Report; It has been a busy 12 months for Policy • In partnership with the Queensland work. Outlined below are the formal Chamber of Industry and Commerce submissions made at State and and other Queensland employer Federal level: organisations, a submission to the Productivity Commission’s Inquiry Policy Submissions to the Queensland into the operation of the Fair Work Government include: Act 2009; • Response to the State Government’s • Response to the Australian Treasury discussion paper Towards a clean Small Business, Competition and energy economy; achieving a biofuels Small Business Division re the Unfair mandate for Queensland; Contract Terms Consultation Paper • Motor Accident Insurance Extending Unfair Contract Term Commission Review of the limits Protections to Small Business; to apply to Compulsory Third Party • Response to the Australian Treasury Premiums; Small Business, Competition and • Response to Parliamentary Finance Small Business Division re Exposure and Administration Committee re draft legislation consultation for the Workers’ Compensation and Extending Unfair Contract Term Rehabilitation and other Legislation Protection to Small Business; Amendment Bill 2015; • The Australian Treasury, Competition • Response to the Parliamentary and Consumer Division re the Small and Legal Affairs and Community Business and Family Enterprise Safety Committee re An Inquiry into Ombudsman Discussion Paper; consumer protections and remedies • The Australian Treasury, Competition for buyers of new motor vehicles and Consumer Division re Exposure (Lemon Laws); draft Australian Small Business and 12 Motor Trades Association of Queensland Industrial Organisation of Employers
The Motor Trades Association of Queensland has long advocated that vehicles should have annual inspections to increase the safety standard of vehicles on the road. . . Family Enterprise Ombudsman • Resolution to develop Voluntary and Associated Bills; Codes of Practice by stakeholders Ongoing long term policy • Response to the Senate Legal relating to the Access to Service commitments and Constitutional Affairs Committee Information; and Deregulation of safety re the Australian Small Business • Amendments to the Vehicle inspection fees and Family Enterprise Ombudsman Registration Regulation to class The Motor Trades Association of Bill 2015; unregistered vehicles that are Queensland (MTAQ) advocates • The Australian Treasury White Paper dealer’s stock and are being used the deregulation of fees for Safety March 2015 Re:think, better tax, within the dealer’s premises, as Inspections in Queensland to ensure better Australia; exempt vehicles, removing insurance vehicle checks are comprehensive and • The Senate Economics Legislation implications. that a one-size fits all approach does Committee Inquiry into the provisions It was pleasing to see some long- not encourage safety shortcuts. of The Treasury Legislation standing advocacy goals achieved Amendment (Small Business and Studies conducted by MTAQ and by MTA Queensland over the past Unfair Contract Terms) Bill 2015. submitted to Transport and Main 12 months. Roads (TMR), confirm the current • Response to the Department of • The commencement of the ‘regulated’ fee of $66.55 to purchase Infrastructure and Regional Affairs standalone legislation - the Motor a Safety Certificate is inadequate Vehicle Safety Standards Division Vehicle and Chattel Auctioneers Act compensation for a comprehensive re the Options Discussion Paper 2014 from 1 December 2014. check that typically takes more than 2014 of the Motor Vehicle Standards Act 1989; • Review of the forms associated with one hour according to established the sale of a used Motor Vehicle best practice. • The Australian Treasury Deregulation Division re Treasury Legislation under the Motor Dealer and Chattel Experience from Victoria, where (Spring Repeal Day) Bill 2015; and Auctioneers Act 2014 resulting in a fees were deregulated 12 years reduction of forms required. • Letter referring to the Australian ago, shows that consumers have not Competition and Consumer • Amendments to the Transport been disadvantaged by the change. Commission re sustained high prices Operations (Road Use Management) In fact, charges have been maintained of fuel in regional areas that did not Act 1995 (s 133 Business owner at realistic levels as a result of reflect declining oil price. to record information about repairs open competition. and painting) which clarified the requirements for motor vehicle repairers Annual inspections of Achievements to keep records about the repair and vehicles over a set age • The improved and updated painting of vehicles and simplified the Franchising Code of Conduct which The Motor Trades Association of record-keeping requirements, removing Queensland has long advocated became law as from 1 January 2015. the requirement for a separate that vehicles should have annual The MTA Queensland has been formal register. inspections to increase the safety involved in submissions relating to the Code since 2008. • Amendments to the Transport standard of vehicles on the road, Operations (Road Use Management making it a safer place for all road • Working with the Queensland Office of Fair Trading on what they refer - Vehicle Registration) Regulation users. Increased roadside inspections to as ‘Operation Round Up’ which 2010 to class unregistered vehicles of vehicles would also increase the seeks to limit the operations of that are dealer’s stock, and are being standard. Creating a timed inspection unlicensed motor dealers preying on used within the dealer’s premises, as check point for recording odometers unsuspecting consumers. In response exempt vehicles, removing insurance on vehicles will also assist with to industry concerns about unlicensed implications due to some areas in the ongoing issues of odometer tampering motor dealers and supported by our dealer premises being considered which is still a concern within industry. ‘dob in a backyarder’ portal which is roads under the definition in the Currently, they are only recorded at the still active and for your use on Transport Operations (Road Use point of purchase or sale which is our website; Management) Act 1995. not enough. Motor Trades Association of Queensland Industrial Organisation of Employers 13
Member Services and Support continued The Motor Trades Association of Queensland (MTAQ) advocates that all individuals or businesses selling new and/or used motor vehicles must operate from council-approved business premises. One category of written-off vehicles their state of origin and presented in Proof of premises for car dealers The Motor Trades Association of Queensland for registration. The Motor Trades Association of Queensland (MTAQ) advocates the Queensland (MTAQ) advocates that These practices, and possible State Government introduce one all individuals or businesses selling opportunities for increased criminal category of written-off vehicles, and new and/or used motor vehicles classify all vehicles assessed as a total activities in Queensland, are a major must operate from council-approved loss as statutory write-offs as a means concern as many such vehicles with business premises. The current laws, of reducing motor vehicle theft and sub-standard repairs end up with while requiring a person selling vehicles improving road safety. consumers who are unaware that their commercially to be licensed (under the vehicle was extensively damaged and/ Motor Dealers and Chattel Auctioneers There was a recent criteria review for or written off. Many such owners are Act), does not require that person to written-off vehicles but we still advocate driving potentially unsafe vehicles. operate from commercial premises. for one category. Luxury Car Tax This has resulted in a lack of protection The MTAQ believes the single category for consumers in regard to their rights can be introduced with some common MTA Queensland has long advocated (statutory warranty, cooling off period) sense exceptions as per the NSW for simplification of the tax system by when they go to someone’s private legislation (pre-approved high value abolishing taxes that are unjustified residence to view a vehicle. The clear vehicles, enthusiasts’ vehicles, or inappropriate. One such tax is the assumption is it is a ‘private’ sale, which vehicles of high personal value, Luxury Car Tax (LCT) which the MTA may not be the case. and some hail-damaged vehicles). The benefits include: Queensland submits falls within this tax Sales of motor vehicles category and is a tax instrument that is • Elimination of contradictory – consumer protection unable to comply with the ‘principles’ terminology in regard to The Motor Trades Association of established in the Better tax. It lacks “written-off” vehicles Queensland (MTAQ) advocates a equity, efficiency and simplicity. • Greater protection to consumers as number of amendments to current ‘total loss’ vehicles cannot be legally The LCT was a tax that was a quasi laws to benefit consumers and protect re-birthed or reregistered. tariff and part of an industry policy the reputation of motor dealers whose • Greater control on the quality of that is no longer relevant as Australia’s integrity is diminished by the number of repairs as authorised by insurance motor vehicle industry slowly is ‘backyard’ dealers allowed to operate. companies through approved dismantled. The 2015-16 budget Key changes include: repairers according to the Industry papers indicate that the LCT will • That the inclusion of Dealers License Code of Conduct. raise $450 million in the coming numbers be compulsory with all • Greater protection to the environment financial year”. car advertisements, as in all other through the controlled disposal (by Australian states. This would clearly licensed repairers) of fluids, gases In pre-budget and pre-election identify ‘dealer’ sales from ‘private’ and other potential contaminants. policy submissions, the Association has sales and facilitate the checking • The controlled disposal of “total loss” called for the LCT’s abolition in a two of a Licence Number against the vehicles will eliminate a source of step phase: Office of Fair Trading website for stolen / illegal parts and other related • A common threshold for all cars and authenticity. Anyone buying or selling criminal activities. used cars as a business must should be the same as fuel-efficient have a licence. Instances occur of The current re-registration procedure cars $75,375 as all modern vehicles repetitive phone numbers appearing for written-off vehicles makes no are fuel efficient. Fuel efficiency is on advertisements, inferring ‘private’ assessment on repair quality. now a redundant differential; sales, thereby avoiding GST and If a uniform policy is not reached • Abolition of the Tax as proposed statutory obligations. between states, the potential exists by Ken Henry in the October 2011 • That there be consistency in for substandard repaired vehicles Future of the Australian Tax requirements for displaying Safety from interstate being de-registered in System Review. Certificates, which are required by 14 Motor Trades Association of Queensland Industrial Organisation of Employers
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